ROI of 243 Percent for Microsoft Dynamics CRM 2011 – I don’t make this stuff up!

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By Jim Hickey, Altico Advisors

Microsoft recently released the results of a study by Forrester Consulting to assess what Forrester refers to as the Total Economic Impact of Microsoft Dynamics CRM 2011.  To save key strokes, let’s call it TEI.  TEI is a standard methodology developed by Forrester Research that captures and quantifies the “voice of the customer” related to technology investments.

The study concluded that “a 2,000-emplyee composite organization with an initial deployment of 50 users would experience a three-year, risk adjusted ROI of 243 percent over a payback period of 4.1 months.” OK, I’ll admit that my research and analysis terminology is a bit rusty since the last time I took a course in statistics was in 1976 (!!) and I’m not sure exactly what “composite organization” or “risk adjusted” means.  But I do know that Forrester is a highly respected company and they don’t throw meaningless numbers out there because their reputation is based on the validity of their reports.

Forrester also cited a number of reasons that fundamentally contributed to the above outstanding results.  Allow me to paraphrase:

1 – The familiar look and feel of Dynamics CRM
2 – Multiple deployment options
3 – Ease of use
4 – Interoperability with Microsoft Outlook

And some super impressive metrics:

- Increased sales productivity of 5 percent
- Time spent on the proposal process shortened by 10 percent
- Acceleration of sales conversion cycle by 50 percent and corresponding revenue gain
- Marketing cost savings of more than $200,000
- Productivity savings of 16 man-hours per month

Altico Advisors’ CRM clients give us similar feedback about the benefits they’ve reaped from implementing Microsoft Dynamics CRM, albeit without attaching exact numbers to their gains.  What we do hear is that whether they’ve moved from another CRM product or whether Microsoft Dynamics CRM is their first experience with a CRM system, the advantages to their business are tangible.

You can read the full CRM ROI study here and visit our Dynamics CRM pages for more information including some compelling material about Microsoft Dynamics CRM in the Cloud.

By Altico Advisors, Microsoft CRM partner serving Massachusetts (MA)

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